TheDumDum 2 years ago Find the missing information Original value: 24,500 annual growth factor: 1.06 annual growth rate: time frame: 5 years new value:

1. amistre64

might help to include what this pertains to

2. TheDumDum

liberal arts

3. amistre64

growth factor and growth rate are synonomous to me, so im not sure what the distinctions would be.

4. amistre64

is the rate in terms of money by chance?

5. amistre64

P(1+rate) where 1+rate is a factor to im assuming the rate is just the .06 part; say 6% ?

6. TheDumDum

I don't know I was absent for a week due to the flu and my teacher just gave me all this work and I don't no how to do it, I was hoping there would be a formula to this or something

7. amistre64

you should have some material that you study from, a textbook or something?

8. amistre64

im assuming here that factor and rate are related

9. TheDumDum

no we don't have one we take notes in class but I wasn't there to take notes cuz I was sick

10. TheDumDum

yes I think

11. amistre64

since the factor is: 1.06 and the factor can be written as: (1+ rate) would you agree that the rate is .06, or 6%?

12. TheDumDum

i might if i new how u got that answer

13. amistre64

... 1 + ? = 1.06

14. amistre64

they give you the factor as 1.06 in the information already

15. TheDumDum

o ok that makes since lol sorry

16. amistre64

now the end solution depends on how we are determining the interest rate. simple interest and compounded interest are 2 different beasts. and give 2 different answers.

17. TheDumDum

ok im following you so which one do we use to find the new value

18. amistre64

dunno, its not stated in the post that you presented us. That information is prolly either part of the material from which you are spose to be studying from, or you skipped over it while typing in the question

19. TheDumDum

i typed the full question, but i have one side question to help me better understand this stuff, if the annual growth rate was 1% would that mean the annual growth factor is 1.01

20. amistre64

that would seem a reasonable assumption to me :)

21. TheDumDum

awesome

22. TheDumDum

ok well you have been a lot of help thank you for your time

23. amistre64

your welcome if you dont know the kind of interest; you can present both forms and ask the teacher which one it was talking about,

24. amistre64

simple interest is a simple formula: Prt just multiply the starting value by the rate and the time given. in your case: \$*.06*5 = new value compound interest can be tricker;$P(1+\frac rn)^{nt}$ r is the rate, n is the number of times a year the interests is adjusted, and t is the number of years since your problem gives an annual rate, I would assume n=1 in this case. $P(1+.06)^5=new~value$

25. amistre64

good luck :)

26. TheDumDum

ok thx again